WOOL PRICES

Press, Volume LXXXVI, Issue 26221, 19 September 1950, Page 9

WOOL PRICES

EFFECT ON CLOTHING COSTS REPLY TO “ILL-INFORMED” CRITICISM (New Zealand Press Association) WELLINGTON, September 18. "If the price of wool doubled its present level, the cost of the wool used in *he manufacture of a suit of clothes would appreciate the value of the suit to the extent of only £1 55,” said Mr G. A. Walsh, of Monavale, chairman of the meat and wool section of the Waikato executive of Federated Farmers and a member of the Dominion council. Mr Walsh was speaking at Hamilton. Mr Walsh added that there had been a great deal of destructive criticism from ill-informed circles about wool prices, and some of these statements came from members of Parliament. Due regard had not been paid by critics to the commercial ana industrial aspects of the industry. The major fact was that New Zealand export wool alone commanded the same purchasing power in world markets to-day as it possessed in pre-war days. Commodities such as meat and dairy produce, on the other hand, had lost ground heavily in their price ratio to that of imported goods. For instance, it required twice as mtay fat lambs to pay for British machinery and textiles as it did before the war, but the same quantity of wool was required to buy the same quantity of imports as was required in 1938. Mr Walsh said that responsible people were prophesying all sorts of things about wool prices and their effects on the prices of woollen manufactured goods. Greasy wool represented 5.87 per cent, of the cost of producing a suit of good quality men’s clothes valued about £2l 10s. Manufacturing and distributing costs of the cloth represented 21.29 per cent., and tailoring and retailing 72.84 per cent. Mr Walsh suggested that there should be a campaign designed to educate the public about the true position of wool prices. Proposal for Ceiling Price The proposal to impose ceiling prices for wool was not palatable to New Zealand hill-country farmers, said the chairman of the North Island hill country committee of Federated Farmers (Mr J. Andrew) to-day. Mr Andrew said that there was 10,000.000 acres of marginal land in New Zealand, and this land returned predominantly wool and store sheep. During the last 20 years this land had deteriorated because of a variety of economic factors. Many former hillcountry farmers had drifted to towns, and labour had been scarce.

“The opportunity now occurs with high prices to rehabilitate this country, which is the basis of our industry,” said Mr Andrew. “This will take several years of good prices. It must be borne in mind that at only the most recent sales has wool sold at extraordinary prices. We have yet to see this season’s prices fulfilled.” He added that after 20 years of struggle for the hill-country farmer there had come a period of good prices, but now it was proposed that a ceiling price be placed on wool. The sheep commission in its report had issued a plea for the amelioration of conditions of back-country farmers. “Theirs has been a hard- life of endeavour against mounting odds with only dwindling resources to carry on,” had stated the commission’s report, which added: “In many cases hope receded, giving place to despair, resulting in the abandonment of property.” “Against such evidence as this,” said Mr Andrew, “is it reasonable to place a restrictive price on the commodity that these men produce?”